Increased authority for National Defence to purchase defence supplies

To support the key objective of streamlining defence procurement processes, Public Works and Government Services Canada (PWGSC) and National Defence (DND) will explore options for increasing DND's current authority of $25,000 for the procurement of defence supplies (goods).

The Minister of PWGSC, under the Defence Production Act, has the exclusive authority for the procurement of defence supplies (goods). An increased delegation would provide the Minister of National Defence with increased authority to proceed with the purchase of goods, under conditions set by the Minister of PWGSC, including the application of the Defence Procurement Strategy, and up to an amount that would be determined following a thorough consideration of all options. This is expected to provide increased efficiency in the purchase of goods of lower value and complexity by reducing the transaction overhead cost of working between two departments.

In advance of a final decision regarding this component of the Defence Procurement Strategy, extensive due diligence and analysis are required to build and assess the options regarding the scope and elements of the increased authority.